REPORT TO COUNCIL
SUBJECT
Title
Approve the Downtown Sunnyvale Business Improvement District Annual Report for Fiscal Year 2019/20; and Adopt Resolution of Intention to Levy and Collect an Annual Assessment and Reauthorize the BID for Fiscal Year 2020/21
Report
BACKGROUND
A Business Improvement District (BID) is a funding tool that provides funding for specific activities that must be authorized yearly by the City Council at the request of the BID Board (Board). Pursuant to Sunnyvale Municipal Code Section 3.60.050 (Establishment of benefit assessments), the formula for calculating the BID assessment amount is determined by the Board and enacted by the City. Business assessments are levied based on relative benefit from the activities to be funded. The City collects the assessment fee and forwards the collected funds to the BID, minus an administrative fee.
Downtown Sunnyvale BID
Approximately 200 businesses are located within the BID area, which is divided into three zones: Zone A, Zone B and Zone C. The current BID boundaries are Sunnyvale, Iowa, Mathilda and Evelyn Avenues (Attachment 1, Page 8).
The current Board members are:
• Dr. Gary Gold, Dr. Gary Gold & Associates & Style Eyes Optique, Chair
• Leigh Odum, Leigh’s Favorite Books and Bookasaurus
• Irene Murphy, Fibbar MaGee’s
• Amit Rajgarhia, Dish Dash
• Katie Voong, K Tea Cafe
• Rahul Nair, The Oxford
The Board informs BID businesses about current projects affecting downtown as well as other issues and programs. The BID offers businesses the means to pool their resources by assessing themselves to collectively pay for marketing and special events which would not be possible on an individual basis. Also, the Board promotes the downtown area by maintaining an active website and strong social media presence.
EXISTING POLICY
Municipal Code Sections - Downtown Sunnyvale Business Improvement District:
3.60.050. Establishment of benefit assessments.
3.60.060. Purpose and use of benefit assessments.
3.60.110. Annual budget process.
3.60.120. Decisions regarding expenditure of funds.
ENVIRONMENTAL REVIEW
This action is not a project within the meaning of the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines section 15378(b)(4) in that it involves the creation of government funding mechanisms or other government fiscal activities that do not involve any commitment to any specific project which may result in a potentially significant impact on the environment.
DISCUSSION
The reauthorization process requires that the Board present the BID annual report for Fiscal year 2019/20 and proposed budget for Fiscal Year 2020/21. The Board is requesting that Council adopt the Resolution of Intention (ROI) (Attachment 2) to begin the BID renewal process for Fiscal Year 2020/21.
As of January 2020, the BID collected about $35,000 in assessments for Fiscal Year 2019/20. Expenditures are approximately $256,466 and revenues are approximately $257,374. The proposed budget for Fiscal Year 2020/21 (Attachment 1, Page 7), as approved by the Board, is $276,700. This proposed budget includes $36,000 from BID assessments; $184,300 from special events, such as the Summer Music Series and possible sponsorships; and, $56,400 from corporate grants, matching funds from the City and other miscellaneous revenues.
During Fiscal Year 2019/20, the BID produced events that continued to draw visitors to Downtown Sunnyvale. Events included Summer Music Series, Magic of Sunnyvale Wine Stroll, Jazz & Beyond Series, and the Holiday Tree Lighting. The events attracted visitors and provided about 62% of the BID’s annual revenue. The BID promotes BID businesses on their website (SunnyvaleDowntown.com). It also maintains a business directory, Twitter account, and Facebook account with (https://www.facebook.com/sunnyvaledowntownassociation) highlights of different downtown businesses and events.
For the BID to be reauthorized for Fiscal Year 2020/21, Council must approve the BID’s Annual Report (Attachment 1) and adopt the Resolution of Intention (Attachment 2). Notice of the public hearing on the BID will be published in a local newspaper and mailed to all BID businesses. Pursuant to Sunnyvale Municipal Code Section 3.60.110, the Resolution of Intention sets a public hearing for April 28, 2020 for the Council to consider all oral and written protests received on or before that date regarding the levy and collection of the assessment and reauthorization of the BID for Fiscal Year 2020/21.
FISCAL IMPACT
Staff time from the Department of Finance is provided at an estimated cost of $3,600 annually for the administration of the assessment. Because these costs are reimbursed by the BID, there is no fiscal impact to the City for providing this service.
PUBLIC CONTACT
Public contact was made by posting the Council agenda on the City's official-notice bulletin board outside City Hall, Sunnyvale Public Library and Department of Public Safety; and by making the agenda and report available at the Office of the City Manager and on the City's website.
The BID Board emailed the meeting announcement to all the BID members.
RECOMMENDATION
Recommendation
Approve the Fiscal Year 2019/20 BID Annual Report, adopt the Resolution of Intention to Levy and Collect an Assessment and Reauthorize the Business Improvement District for Fiscal Year 2020/21, and schedule the public hearing for April 28, 2020.
Staff
Prepared by: Maria Rodriguez, Administrative Analyst
Reviewed by: Connie Verceles, Economic Development Manager
Reviewed by: Jaqui Guzmán, Deputy City Manager
Approved by: Kent Steffens, City Manager
ATTACHMENTS
1. BID Annual Report and Budget
2. Draft Resolution